Community Economic Adjustment Diversification Planning

Assistance for States and communities to plan community adjustment and economic diversification activity to lessen an area's dependence on Defense expenditures.


Agency - Department Of Defense

The Department of Defense provides the military forces needed to deter war and protect the security of the United States through five major areas: peacekeeping and war-fighting efforts, Homeland Security, evacuation and humanitarian causes.

Office - Western Region Director, Office of Economic Adjustment, Department of Defense, 1325 J Street, Suite 1500, Sacramento, CA 95814.

Telephone: (916) 557-7365.
Website Address

Relevant Nonprofit Program Categories

Selected Recipients for this Program

RecipientAmount Start DateEnd Date
County Of Kern $ 1,092,005   2018-08-012020-07-31
University Of Mississippi $ 1,323,220   2018-07-012020-06-30
Wright State University $ 1,845,337   2019-01-012020-06-30
Pikes Peak Community College $ 998,874   2018-12-012020-05-31
Oklahoma Aeronautics Commission $ 797,400   2019-05-012020-02-28
University Of Southern Mississippi, The $ 1,800,000   2018-08-012020-01-31
University Of Alabama In Huntsville, The $ 496,331   2018-07-012019-10-30
St Louis Economic Development Partnership $ 249,502   2018-08-012019-02-28
Sierra Vista, City Of $ 641,865   2017-03-012019-02-28
Cambria, County Of $ 270,000   2018-02-012019-02-28

Program Accomplishments

Communities have developed strategies to diversify regional economies to reduce Defense dependency.

Uses and Use Restrictions

Assistance is structured through an assigned Project Manager working with a Defense-dependent State and/or local government, and may be used to plan and carry out local economic adjustment programs, including , but not limited to: development of diversification studies; assessment of local economic strengths, weaknesses, opportunities and threats; analyses of local economic Standard Industry Code clusters; enhancement of local economic development capacity to diversify local Defense dependencies; review of local Defense prime and sub contracting activity; and, outreach to local small businesses, workers, and other community interests.

Funds profided under this program nay not be used to directly identify or assist a business, inculding a business expansion, in the relocation of a plant, facility, or operation from one Labor Market Area (LMA) to another if the relocation is likely to result in the loss of jobs in the LMA from which the reloction occurs.

Eligibility Requirements

Applicant Eligibility

Applicants for this assistance are to contact the Office of Economic Adjustment to have a Project Manager assigned who, in turn, will work with the Applicant to determine eligibility for assistance under this program.

Stated, cities, counties, political subdivisions of a State, special purpose units of a State or local government, and tribal nations are eligible for this assistance if a substantial portion of the economic activity or population of the applicant's geographic area is dependent on defense expenditutes.

Beneficiary Eligibility

States and communities, including workers, businesses, and other community interests that may be dependent upon Defense expenditures.


Applicants must document that a substantial portion of the economic activity of a local area is dependent on Defense expenditures, including a statement explaining the direct Defense wage and salary employment as a share of regional total employment and as a share of recent annual changes in regional total employment.

Aplication and Award Process

Preapplication Coordination

Parties interested in obtaining assistance under this program should contact OEA at: Director, Office of Economic Adjustment, Department of Defense, 400 Army Navy Drive, Suite 200, Arlington, VA 22202-4704, (703)604-6020, or by e-mail at

OEA, in turn, will assign a Project Manager to work closely with the affected State or community to craft a responsive program of technical and, where eligible, project grants.

The Project Manager will provide necessary information to prepare and submit an application for financial assistance under this program.

This program is excluded from coverage under E.O.


Application Procedures

Applications are necessary for the project grants available under this program and must be invited by the Office of Economic Adjustment through an assigned Project Manager. The standard application forms required by 32 CFR Part 33, Uniform Administrative Requirements for Grants and Cooperative Agreements to State and local Governments will comprise an application for assistance once they are invited. Applications and supporting documentation should be submitted to the Director of the Office of Economic Adjustment, Department of Defense. Applicants will generally be invited to submit their requests for assistance electronically. In instances where, for whatever reason, an electronic application cannot be submitted, provisions will be made to accept a paper application addressed to: Director, Office of Economic Adjustment, Department of Defense, 400 Army Navy Drive, Suite 200, Arlington, VA 22202-4704.

Award Procedures

Applications are approved by the Director, Office of Economic Adjustment.




10 U.S.C. 2391.

Range of Approval/Disapproval Time

To the extent practicable, OEA will inform an Applicant of approval within seven (7) business days of the receipt of a final, completed application. OEA will promptly inform an applicant of the rejection of any application once its due diligence has been completed.





Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. Generally, not less than10 percent of the project's total proposed funding is to be comprised of non-Federal sources.

Length and Time Phasing of Assistance

A grant period is typically one year. Funds are disbursed quarterly or as required.

Post Assistance Requirements


Interim and final progress and financial reports are required.


In accordance with the provisions of OMB Circular No. A-133, "Audits of States, Local Governments, and Non-Profit Organizations."


In accordance with 32 CFR 33.

Financial Information

Account Identification



(Grants) FY 07 $1,500,000; FY 08 est $1,500,000; and FY 09 est not reported.

Range and Average of Financial Assistance

$175,000 - $500,000; $200,000.

Regulations, Guidelines, and Literature

OMB Circular Nos. A-133 Audits of States, Local Governments, and Nonprofit Organizations and A-87 Cost Principles for State, Local, and Indian Tribal Governments. 32 CFR Part 25 - Government-wide Debarment and Suspension (Non-procurement); 32 CFR Part 26 - Drug-Free Workplace; 32 CFR Part 28 - New Restrictions on Lobbying; 32 CFR Part 33 - Uniform Administrative Requirements for Grants and Cooperative Agreements to State and Local Governments. Related publications are available on the OEA Website.

Information Contacts

Regional or Local Office

Western Region Director, Office of Economic Adjustment, Department of Defense, 1325 J Street, Suite 1500, Sacramento, CA 95814. Telephone: (916) 557-7365.

Headquarters Office

Director, Office of Economic Adjustment, Department of Defense, 400 Army Navy Drive, Suite 200, Arlington, VA 22202-4704. Telephone: (703) 604-6020. E-mail:

Criteria for Selecting Proposals

The level of economic dependence on military, DoD civilian and Defense industry employment, an appropriate and clear project design to address the need identified, the innovative quality of the proposed approach to stimulating economic adjustment and economic diversification, reasonableness of the proposed work program and the proposed level of funding.

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